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XPP Crowded With Sellers

In trading on Monday, shares of the Proshares Ultra FTSE China 50 ETF entered into oversold territory, changing hands as low as $57.51 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.

In trading on Monday, shares of the Proshares Ultra FTSE China 50 ETF (XPP) entered into oversold territory, changing hands as low as $57.51 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Proshares Ultra FTSE China 50, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 47.2.

A bullish investor could look at XPP's 29.9 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), XPP's low point in its 52 week range is $41.30 per share, with $71.59 as the 52 week high point — that compares with a last trade of $57.59. Proshares Ultra FTSE China 50 shares are currently trading down about 4.8% on the day.